What is the PBGC and how does it relate to your benefit?
March 7, 2008 01:00 AM
You may have heard about the Pension Benefit Guaranty Corporation (PBGC). This quasi-governmental agency insures the pension benefits for all defined benefit plan recipients. This organization was created as part of the Employee Retirement Income Security Act (ERISA) of 1974 after several pension plans failed, leaving many participants without any pension benefits for their retirement. The agency also takes over the plans for companies that have terminated their pension plans due to bankruptcy.
Every pension fund administrator, including NEBF, pays insurance premiums to the PBGC to insure the benefits paid out by the plan.
To learn more about the PBGC, please visit the PBGC website.
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